UK Court Hears Case of $176M Cryptocurrency Theft via Security Camera Surveillance
In his ruling, Justice Cotter indicated the husband's case demonstrates strong merit based on the presented evidence and urged the scheduling of an expedited trial.
A man residing in the United Kingdom has brought accusations against his separated spouse, alleging she orchestrated the theft of 2,323 Bitcoin from his Trezor cold storage device during 2023, claiming she utilized surveillance equipment to obtain his recovery phrase and authentication credentials.
According to a judicial ruling authored by Justice Cotter and submitted to the UK's High Court of Justice this past Tuesday, legal representatives for the plaintiff, Ping Fai Yuen, have asserted that his spouse, Fun Yung Li along with her sister secretly filmed him in order to acquire his seed phrase and subsequently transferred $176 million worth of Bitcoin (BTC) across 71 separate wallet addresses.
Following an alleged warning from his daughter regarding the scheme, Ping proceeded to set up audio surveillance devices and maintains he successfully recorded Fun having conversations about the theft and strategies for relocating substantial amounts of funds while avoiding detection by financial institutions or authorities.
According to documentation presented to the court, none of the wallet addresses have shown any transaction activity since Dec. 21, 2023.
Shortly following the final transfer in December, Ping notified police about the suspected theft. His wife was subsequently arrested by law enforcement officials who seized multiple hardware wallets and timepieces from her possession. She was subsequently granted bail during the ongoing police inquiry.
Police subsequently announced there would be no "further action pending new evidence."
Wallets have been targeted by dusting attacks
Last November, approaching two years following the purported theft, Ping submitted an application for an asset preservation injunction, requesting the court impose a freeze on all digital currency linked to his wife, officially recognize his ownership rights to the Bitcoin and either mandate its return or compensate him with its equivalent monetary value in traditional currency.
He further stated he continues to observe the Bitcoin addresses and voiced apprehension that they have become targets of a crypto dusting attack.
Dusting attacks are characterized by malicious parties transmitting minute quantities of digital assets to wallets for the purpose of monitoring their activity and attempting to unmask the identities of wallet holders with substantial balances for subsequent phishing schemes and other fraudulent activities.
An unrelated incident that occurred in September 2024 purportedly featured a physical altercation between Ping and Fun, leading to criminal charges filed against Ping for assault occasioning actual bodily harm along with two counts of common assault, charges to which he subsequently entered guilty pleas.
Judge says the husband has a high chance of winning
In his written judgment, Justice Cotter stated that Ping demonstrates a strong likelihood of prevailing in this matter, considering the evidence accumulated since the alleged incident transpired and the reality that Fun has not offered "any alternative (or any) explanation for the movement of the Bitcoin."
In my judgment the claimant has demonstrated a very high probability of success. The evidence is that he was warned of what the First Defendant was seeking to do, the transcripts are damning; and when the First Defendant's property was searched, the necessary equipment to exfiltrate the Bitcoin was found.
Justice Cotter
Justice Cotter further observed that should the parties fail to reach an agreement on how to move forward, the court will arrange a case management hearing. He additionally advocated for an expedited trial, characterizing it as "necessary given the security threats to, and volatility of value of, the Bitcoin."